Understanding NYC’s FARE Act: What Every Renter Should Know
Understanding NYC’s FARE Act: What Every Renter Should Know
For years, navigating the New York City rental market has meant facing significant upfront costs, often including a hefty broker fee. But a landmark piece of legislation, the Fairness in Apartment Rental Expenses (FARE) Act, has fundamentally changed the game. If you're a prospective renter in NYC, understanding this new law is crucial to protecting your rights and your wallet.
This guide from Yeo Real Estate breaks down everything you need to know about the FARE Act, from what it is to how it impacts your next apartment hunt.
What Is the FARE Act?
The FARE Act, officially known as Local Law 119 of 2024, went into effect on June 11, 2025. This law was designed to bring much-needed transparency and fairness to the rental market by addressing a long-standing point of contention: broker fees.
In short, the law dictates that the party who hires the broker is the party responsible for paying the broker's fee. This is a seismic shift from the previous norm, where tenants were often forced to pay a fee to a broker they never hired, simply to rent an apartment.
FAQs: How Does the FARE Act Impact Me?
Here are the most common questions renters have about this new legislation:
Who pays the broker fee now?
Under the FARE Act, the responsibility for the broker fee is determined by who hired the broker:
If the landlord hired the broker (often called a "listing agent"), the landlord is responsible for paying that broker's fee. The broker cannot legally charge the tenant. This applies even if the listing agent is using an online platform like StreetEasy or Zillow to advertise the apartment.
If you, the tenant, hire a broker to represent you in your apartment search, you are responsible for paying your broker's fee. This arrangement is still completely legal and allows you to have a professional working exclusively on your behalf.
Can a broker still show me an apartment and then charge me?
No. The FARE Act explicitly prohibits brokers from "conditioning the rental of an apartment on a tenant engaging any agent." This means a broker cannot force you to sign a contract to represent you just to see an apartment they are listing for a landlord. If you contact a broker about a specific listing, they are presumed to be the landlord's agent and cannot charge you.
What about "no-fee" apartments?
The law essentially makes all listings "no-fee" for the tenant if the broker is representing the landlord. However, be aware that some landlords may try to offset the cost of the broker fee by increasing the monthly rent. It's important to look at the total cost of a rental, not just the upfront fees.
Navigating the Rental Process Under the New Law
The FARE Act also establishes critical new disclosure requirements that benefit tenants.
Mandatory Fee Disclosures
Landlords or their agents are now required to provide a clear and conspicuous itemized disclosure of all fees a tenant must pay to rent an apartment.
What must be disclosed?
The disclosure must include:
Application fees
Credit/background check fees
Move-in/move-out charges
Pet fees
Lock or key charges
Any other upfront or recurring costs
This disclosure must be provided in writing and signed by both the tenant and the landlord/agent before the lease is signed. This ensures there are no surprises or hidden costs after you've committed to a unit.
What if a Broker Tries to Charge Me an Illegal Fee?
Knowledge is your strongest tool. If you encounter a broker or landlord who attempts to violate the FARE Act, you have a clear path to recourse.
How to File a Complaint:
You can file a complaint with the NYC Department of Consumer and Worker Protection (DCWP). The easiest ways to do this are:
Online: Visit the DCWP consumer complaint portal on the NYC.gov website.
By Phone: Call 311 and ask to file a tenant complaint.
It is highly recommended that you collect evidence, such as text messages, emails, screenshots of listings, and receipts, to support your complaint.
Penalties for Violations
Violating the FARE Act can result in serious consequences for landlords and brokers, including:
Civil penalties of up to $2,000 per violation.
Being required to refund any illegally collected fees to the tenant.
The possibility of private legal action by the tenant to recover restitution.
Tips & Takeaways for NYC Renters
Tip | Description |
Know Your Rights | Remember: if you didn't hire the broker, you don't have to pay them. |
Look Beyond "No-Fee" | Be aware that the rent may be slightly higher to cover the landlord's broker cost. Do the math to find the best deal. |
Get Everything in Writing | Insist on a signed, itemized list of all fees before you sign a lease, as required by law. |
Don't Be Pressured | A broker cannot force you to hire them to see a specific apartment. |
Report Violations | Use the DCWP or 311 to report illegal fees and help enforce the law for all renters. |
The FARE Act is a monumental step toward a more transparent and equitable rental market in New York City. It empowers you, the renter, with the right to clear pricing and fair treatment.
Ready to Find Your Next NYC Home?
Whether you're looking to buy or rent, the NYC real estate market can be complex. Working with a professional who understands the latest laws and market trends is essential.
At Yeo Real Estate, we are committed to providing expert, transparent, and trustworthy service to our clients. Contact us today to learn how our dedicated agents can help you find your dream home without any unwelcome surprises.